For about a year or so I've been thinking about converting my current house into a rental property and buying a new house. I don't plan on making the move unless I find the ideal opportunity. A few questions I have are:
When I apply for a new mortgage will the banks treat the new mortgage as a primary home mortgage or a second home mortgage?
Will they require at least 20% for a down payment?
I'm only planning on renting my home if I can get a positive cash flow of ~$300/mo or if it increases my equity ~$500/month. Would you suggest more or would you be willing to settle for less?
What's a good way to check comparables? I've browsed craigslist but I'm wondering about other ways too.
What are the tax implications when you rent? The net profit each year goes to your income tax, and there's capital gains when you sell if you haven't lived in the house for at least 2 of the last 5 years, correct?
When I apply for a new mortgage will the banks treat the new mortgage as a primary home mortgage or a second home mortgage?
Will they require at least 20% for a down payment?
I'm only planning on renting my home if I can get a positive cash flow of ~$300/mo or if it increases my equity ~$500/month. Would you suggest more or would you be willing to settle for less?
What's a good way to check comparables? I've browsed craigslist but I'm wondering about other ways too.
What are the tax implications when you rent? The net profit each year goes to your income tax, and there's capital gains when you sell if you haven't lived in the house for at least 2 of the last 5 years, correct?